The resources boom goes on, despite some fraying at the edges with the impact of the higher Australian dollar, labour and resources shortages and slowing prices
Tuesday it was Rio with the $2.1 billion expansion of its alumina refinery in Gladstone in Central Queensland.
In addition, more than $300 million will be spent finding and delivering coal seam gas to the plant by Origin and other companies.
Yesterday it was BHP Billiton, which signed off on the $2 billion development of the Pyrenees oil field in the Exmouth sub-basin, offshore from North-West Cape in Western Australia.
BHP Billiton's share is 71.43 per cent (almost $US1.2 billion of the $US1.7 billion). The rest is held by Apache Corp of the US.
Production is expected to commence during the first half of the 2010 financial year. The Pyrenees field will include a floating production, storage and offloading vessel (FPSO) with 13 subsea wells tied to it. (BHP has used sub-sea completions/ floating vessel storage systems in some of its earlier developments off the NW WA coast). Water depth across the development area is between 170 to 250 metres.
The Pyrenees fields of Crosby, Ravensworth and Stickle were discovered in July 2003 and have estimated recoverable oil reserves in the range of 80-120 million barrels of oil.
The field was estimated to have an economic life of 25 years, BHP said in a statement in London on Tuesday night and then to the ASX yesterday.
BHP Billiton will be the operator.
BHP Billiton Group energy president Mike Yeager said "The Pyrenees development presents another solid opportunity for the Company to commercialise reserves in the Exmouth Sub-basin, an important oil region in Australian waters.
"Pyrenees is the second FPSO development we are undertaking in the region and builds on our knowledge and execution capability in Western Australia."
In November 2005, BHP approved the development of the Stybarrow oil field in the Exmouth sub-basin, almost 20 kilometres west of the Pyrenees development.
Stybarrow was expected to start on schedule for the first quarter of calendar year 2008.
The FPSO vessel will be disconnectable, double hulled and able to process approximately 96,000 barrels of oil a day. Oil export will be via shuttle tankers.
The company said the Pyrenees WA-12-R project has been subjected to a comprehensive environmental impact assessment process that has involved extensive consultation with the local community and other key stakeholders.
BHP shares rose 52c to $36.40, a new record.
